Do You Understand the Financial Health of Your MSP

Are you running a profitable business? And no, just saying ‘yes’ isn’t going to cut it. It’s about really knowing the numbers behind that ‘yes.’ Profit isn’t a dirty word. In fact, the most successful MSPs don’t just make more money, they also deliver a better client experience because they’ve got their finances in check. If you’re serious about growing your business and delivering top-notch service, it’s time to get real about your financials. Join us for a deep dive into the key benchmarks that top-performing MSPs track and get actionable tips on what levers you should focus on to drive growth, improve margins, and boost client satisfaction

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Key Takeaways

1

Profit Starts with Gross Margin, Not Revenue

Revenue alone doesn’t keep an MSP healthy — gross margin dollars do. Understanding what it actually costs to deliver services (including labour) is essential before worrying about scale or growth.

2

Best-in-Class MSPs Know Their Numbers

High-performing MSPs typically operate around 50% gross margin, keep operating expenses under control, and target 18–20% EBITDA. Without clear benchmarks, it’s impossible to know whether your business is healthy or just busy.

3

Pricing Is the Most Common MSP Failure Point

Most MSPs undercharge for their services by copying market prices instead of pricing based on true costs and value. Poor pricing decisions — especially bundled services and hourly work — erode profitability no matter how efficient the business is.

4

Cash Flow and Adjusted EBITDA Matter More Than Vanity Metrics

Net profit looks good on paper, but cash flow keeps the business alive. Adjusted EBITDA provides a clearer picture of business value by normalising owner compensation and non-business expenses — especially important for growth or exit planning.

5

Growth Comes from Value, Not Discounting

Competing on price leads to commoditisation and shrinking margins. MSPs that grow sustainably focus on advisory services, business outcomes, cybersecurity maturity, and ongoing customer education — not being the cheapest option.

Featured Panelists
Ben Town
Hosted Network
James Davis
The TSP Advisory
Ryan Spillane 360 Consulting
Ryan Spillane
360 Consulting